New Delhi, April 15 -- Non-banking financial companies (NBFCs) are expected to increase their reliance on bank borrowings in FY27, supported by relatively lower interest rates in the banking system, according to Crisil Ratings.

The share of bank borrowings, which rose to 43 per cent in FY26 amid higher activity in the second half, is projected to inch up further to around 45 per cent by the end of the current fiscal.

Capital Market Borrowings Lose Momentum

The rating agency attributed this shift to evolving interest rate trends. While bank lending rates continued to soften through FY26, bond yields declined initially but hardened in the latter half and remained elevated, PTI reported.

As a result, debt capital market issuances are exp...